The trustee handling the Mt. Gox repayments said that the extension was needed to complete pending repayments. On the bright side, fears of a large sell-off appear limited as most creditors are long-term holders. In India, the Madras High Court ruled in favor of an XRP holder against WazirX, and blocked the exchange from redistributing the user’s XRP to cover losses from its $230 million hack. The court affirmed crypto as property and ruled that the exchange must provide a bank guarantee of 956,000 rupees (approximately $11,500) or deposit the same amount into an escrow account as a form of interim protection for the user.
Mt Gox Repayment Deadline Moved
The long-running Mt. Gox saga took yet another turn after the defunct Bitcoin exchange once again delayed repayments to its creditors, this time pushing the deadline from Oct. 31, 2025, to Oct. 31, 2026. The announcement was released on Monday, and came just days before the original repayment deadline. It now extends what has already been a decade-long wait for victims of one of crypto’s most infamous collapses.
According to the rehabilitation trustee overseeing the case, while a majority of the base, early lump-sum, and intermediate repayments have been made to creditors who completed the required procedures, many others are still awaiting their funds. The trustee stated that, with court approval, it was deemed “desirable” to extend the repayment period to ensure that all eligible creditors could be paid “to the extent reasonably practicable.”
Repayment delay announcement
Mt. Gox was once the dominant Bitcoin exchange handling over 70% of global BTC trading volume, but it collapsed in early 2014 after disclosing that it lost around 850,000 BTC to a massive hack. The event sent shockwaves through the early crypto market and became a cautionary tale of security failures in the nascent industry.
Roughly 200,000 BTC were later recovered, while the remaining 650,000 BTC are still missing. Since then, the exchange’s rehabilitation has been managed through a court-approved process in Japan, which began issuing repayments in 2024 in the form of Bitcoin and Bitcoin Cash.
The prospect of creditors finally receiving their long-awaited Bitcoin has long raised concerns about potential market sell pressure, as some feared recipients might liquidate their holdings upon repayment. However, on-chain data suggests that these fears may be overstated.
According to Arkham Intelligence, Mt. Gox still holds around 34,690 BTC, which is worth nearly $4 billion. This figure is down more than 75% from the 142,000 BTC it held in mid-2024. Some analysts argued that the distribution’s impact on Bitcoin’s price will likely be short-lived, as most creditors are long-term holders or institutional entities unlikely to sell immediately.
Bitcoin held by Mt.Gox (Source: Arkham Intelligence)
While the latest delay adds yet another chapter to one of crypto’s longest-running stories, many in the community have come to see Mt. Gox as a symbol of the industry’s growing pains.
WazirX Barred from Reallocating User’s XRP
Meanwhile, an Indian court ruled in favor of an XRP holder in a dispute with the crypto exchange WazirX, granting the user interim protection against the platform’s plan to reallocate their assets. The decision was delivered by Justice N. Anand Venkatesh of the Madras High Court, and it prevents WazirX from redistributing a customer’s 3,532 XRP, worth roughly $9,400, to cover losses stemming from a $230 million exploit that occurred in July of 2024.
The case arose after WazirX announced a restructuring plan that included a “socialization of losses” mechanism, under which all users — regardless of which tokens they held — would be required to absorb part of the platform’s losses. The court rejected this approach in the case of the XRP holder, ruling that the stolen assets were ERC-20 tokens and therefore a completely different class of cryptocurrency from XRP.
A exert from WazirX’s restructuring plan
Justice Venkatesh explained that cryptocurrency qualifies as property and is capable of being possessed, which means that the user’s XRP holdings remained their rightful property and could not be used to offset WazirX’s losses. The judge further ruled that the exchange must provide a bank guarantee of 956,000 rupees (approximately $11,500) or deposit the same amount into an escrow account as a form of interim protection for the user while arbitration proceedings continue.
The dispute comes as WazirX tries to recover from a severe security breach attributed to North Korea’s Lazarus Group, which exploited a vulnerability in the exchange’s multi-signature wallet system. The attack forced the platform to suspend operations for 16 months before a Singapore court approved its restructuring plan earlier this month, supported by almost 96% of its creditors. So far, WazirX has not yet commented on the Madras High Court’s ruling.
